How to make money in the bear market of cryptocurrencies: 3 strategies
How to make money in the cryptocurrency bear market? Actually, besides accumulating bitcoins at a good price, you still have three options.
Table of Contents
How to make money in the cryptocurrency bear market? Actually, besides accumulating bitcoins at a good price, you still have three options.
- The first way – training, now is the time to pump your skills in cryptocurrencies, and often cryptoprojects reward your efforts tokens with a very good price;
- The second option – speculation, even in the current bear market of cryptocurrencies some coins can give 30-100% on some event. Such trades are very risky, but there is a chance;
- The third option is trading, which is the biggest risk of all the listed ways. But if you manage to become a trader on the bearish market of cryptocurrencies, you will have no equal on the bull market.
Learning
The bear market is actually a very good time because you have a certain peace of mind, of course, if your portfolio is not showing -70%. It’s about the fact that you don’t have to watch the market every day and worry about FOMO, you can distract yourself and find time to pump your professional skil in cryptocurrencies.
For many, entering the world of cryptocurrencies happened in a pattern similar to this. A friend told me that it was possible to make money from some token. You were shown how to put your money on the exchange, you were shown how to buy, you got losses, because you bought it on the peak, but you believe that it will grow again. Now also many of those, for whom their first deal in cryptoworld was UST steaking, how it ended there is also known, I think.
That’s basically it, as they say, tried cryptocurrencies and didn’t like it. But it’s a real big industry with a lot of possibilities, and while the market is quiet, it’s time to get to the bottom of it.
We’re not going to agitate you to buy any courses, although they are out there and some of them are really useful. But right now we are not going to encourage you to buy knowledge, it’s certainly an option, but it’s theory. It’s much better now to engage directly in practice.
From our notional amount you can allocate $100 to $200 to buy a little bit of ether, solana, BNB, TRON or other coins on the exchange. After that you create wallets in required network, withdraw funds there, try to conduct exchange on decentralized exchange, delegate some tokens to staking, create liquidity pool, etc. The money you allocate for these needs will bring you the experience you need, so that when the active phase of the market starts again, you won’t stand aside and wait for a comment to tell you where to buy this coin. At that point you will already know how the basic mechanisms work and can act.
By the way, such training can also be a way to make money. We can remember the story of the leading decentralized exchange Uniswap, which made a furor when it was the first in the crypto-world to distribute tokens to users. There are rumors, partly backed up by developers, that the popular cryptocurrency wallet MetaMask will also be issuing its token in a similar scheme. And there are also many new cryptoprojects that are currently in the testing phase and are willing to pay with tokens for participation in this process.
The latter option is interesting because although you don’t know exactly if and how much the reward will be, you can do it with zero investment. At a minimum, you’ll get experience, and at a maximum you’ll also get tokens, which you can then sell, sometimes very profitably.
Speculation
If you want to make money in a bear market and have money you can generally afford to lose and it won’t affect your life in any way, then you can consider speculation.
Look, the cryptocurrency market is very dull right now, but it’s not dead, and if you know how to look for opportunities, then you can see them. Recent such opportunities have been ApeCoin and TRON. For example, on the first round of NFT-land sales in the future meta-universe from bored monkeys you could earn up to 160%:
You should have just bought the token at the announcement of the event and got out before it happened, a classic “buy on rumor and sell on news” scheme.
Or the TRON story: on April 21, Justin Sun announced the launch of the USDD steblecoin on May 5. Those who believed in Justin’s and TRON’s success could earn up to 48% on this news:
What do I need to do not to miss the next such opportunity? To start with return to point #1 and learn how to work with cryptocurrencies and exchanges, also start to understand which projects have value and which are frank slag, understand which events lead to a downfall, where and how to monitor the news to have time to start, and the most useful skill – is profit fixing, without which there is no way at all.
Recall that such speculation on events is a very high risk, but if you have mastered the skills voiced, you can allocate an amount of $100 to $300 and try to earn. Pumps come out several times worse in terms of earnings than during a bull market, but according to various estimates it could still be six months to two years away, and one wants the money here and now.
Crypto Trading
Many people who bought and earned on altcoins last year during the rise consider themselves traders and now, when they lose their deposits, they blame the exchanges, manipulators, Biden and anyone else but themselves. Although the answer is on the surface: the market has changed and now it is necessary to use absolutely different strategies and approach to trading.
It is the bear market that shows who is really a trader and who got short-term success in a bull market and now doesn’t know what to do next. If the speculation we talked about before is a big risk, then trading is a big risk squared.
However, our task is first and foremost to gain experience, which we then convert into money when the bulls come back. So it makes sense to try your hand at trading cryptocurrencies for a small amount of $100 to $300. Here are the latest bitcoin fluctuations in a small sideways movement, if you take at least a third of each of these movements, it will be a pretty good result overall.
We’re not going to advise you to buy someone’s training or cool indicators, the fact is that all these things are very situational and for someone these indicators or robots work, while for another person they will not have any result.
No trader knows exactly where the market is going to go, and no trading bot is able to beat the market for a long time. That’s why you have to do everything by yourself, learn on practice and this is the only way to build your own trading system. What you have to necessarily assimilate is psychology of trading, to learn how to control yourself and not to lose on emotions.
The next step is discipline, in order to use a systematic approach and that is first of all to write down all your deals, so that you can draw conclusions and find mistakes later. And be sure to study risk management, start with the basic rule of two and six percent.
Note that we haven’t said anything yet about indicators or signals to trade by. For successful trading you need to find your approach to the market, everybody does it in his own way and there is a lot of information on different trading strategies on the net. You can easily find it and study it, but that doesn’t mean that it will work, you have to take the knowledge and learn how to use it in a way that suits you. If someone tells you that there is a trading system or indicator which always works, then either this person is blinded by luck and life will soon punish him for it, or else he is just a crook who wants to make money on you. There is no third option in this matter.
How much money to allocate not trading, you decide for yourself. We warn you at once that in 90% of cases the result will be a lost deposit, but at the same time you will understand that trading on the crypto market is not for you and you should consider other options such as passive ways of income or investing.
